Dell revenue growth slows on strong dollar, China lockdowns

Dell monitors are seen for sale in a store in Manhattan, New York City, U.S., November 24, 2021. REUTERS/Andrew Kelly

Aug 25 (Reuters) – Dell Technologies Inc (DELL.N) posted its slowest revenue growth in six quarters on Thursday as a surge in the dollar and COVID-19 flare-ups in major market China offset a jump in its enterprise-focused business.

Shares of the company fell more than 7% in extended trading.

The greenback surge has this year eaten into the earnings of technology firms from Microsoft Inc (MSFT.O) to Apple Inc (AAPL.O), compounding pressure from a drop in consumer spending on electronics such as personal computers and smartphones.

Dell's revenue rose 9% to $26.43 billion in the quarter to July 29 and was roughly in line with market expectations, according to Refinitiv data.

Consumer revenue fell 9%, echoing weakness seen at Intel Corp and Lenovo Group (0992.HK) as demand weakened after a pandemic-fueled boom and decades-high inflation prompted consumers to prioritize essentials.

But orders from businesses gearing up for the hybrid-work era pushed Dell's commercial revenue up by 15% to $12.1 billion. The storage and servers-focused unit also posted strong growth.

Net income from continuing operations fell to $506 million, from $629 million a year ago.

Excluding items, Dell earned $1.68 per share.

Reporting by Eva Mathews in Bengaluru; Editing by Aditya Soni

Our Standards: The Thomson Reuters Trust Principles.

Source:www.reuters.com